Debt-to-income ratio calculator: the number lenders check first
When you apply for a mortgage or other loan, lenders look closely at how much of your income already goes to debt. That number, your debt-to-income ratio, can decide whether you’re approved and on what terms. This calculator works it out the way lenders do, so you can see where you stand before you apply and which changes would move it most.
Debt-to-income ratio calculator
- Debt-to-income ratio
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- Housing ratio
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- Total monthly debt payments
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- Room to 36%
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Lenders compare monthly debt payments with gross income. Common reference points are 28% for housing and 36% for all debts; many loan programs allow more, often up to 43% to 50%, depending on credit, savings and the loan type. Utilities, groceries, insurance and other living costs aren’t counted, which is why a ratio a lender accepts can still feel tight. Everything here runs in your browser; nothing you enter is stored or sent.
What this calculator can help you understand
- Your debt-to-income ratio, the share of gross income going to debt payments.
- Your housing ratio, the share going to housing alone.
- How much room you have below common lender guidelines.
When it’s useful
- Before applying for a mortgage, auto loan or personal loan.
- When deciding which debt to pay off first before applying.
- When your income or payments change.
Who it’s for
- Home buyers preparing for a mortgage application.
- Anyone planning a large loan.
- People paying down debt who want to track progress.
What to enter
| Input | What it means | Where to find it |
|---|---|---|
| Gross monthly income | Income before taxes and deductions | Your pay stub or offer letter; divide yearly pay by 12 |
| Housing payment | Rent, or a mortgage payment with tax, insurance and HOA dues | Your lease or mortgage statement |
| Car payments | Monthly auto loan or lease payments | Your loan statements |
| Student loan payments | Required monthly payments | Your servicer |
| Credit card minimums | Minimum payments due, not what you usually pay | Your card statements |
| Other debt payments | Personal loans, child support, alimony | Your statements or court orders |
How to use it
- Enter your gross monthly income.
- Enter your housing payment, or the one you expect after buying.
- Enter each required monthly debt payment.
- Read your DTI and housing ratio, and your room below 36%.
Understanding your results
- Debt-to-income ratio = total monthly debt payments ÷ gross monthly income.
- Housing ratio = housing payment ÷ gross monthly income.
- Room to 36% is how much more in monthly payments would fit below 36%, or how far over you are.
A worked example
Suppose you earn $7,000 a month before taxes. Your housing costs $2,100, and you pay $400 on a car loan, $200 on student loans and $100 in card minimums.
- Housing ratio: 30.0%.
- Debt-to-income ratio: 40.0%, with $2,800 in monthly payments.
- Against 36%: that would allow $2,520 a month, so you’re $280 over.
- Paying off the car loan would bring DTI down to 34.3%.
Common mistakes
- Using take-home pay. Lenders use gross income.
- Using what you usually pay on cards instead of the required minimum.
- Forgetting the new payment. For a mortgage, lenders count the payment you’re applying for.
- Treating approval as affordability. DTI ignores living costs like childcare and groceries.
What to do with your result
- If you’re above 36%, look for a debt you could pay off before you apply.
- See what home price fits your income with the home affordability calculator.
- Plan payoff order with the debt payoff calculator.
Limitations to keep in mind
Lenders follow their own rules for counting income and debts, such as how they treat bonuses, self-employment income, deferred student loans or co-signed debts. Guidelines vary by loan program. This calculator gives an estimate, not a lending decision. It isn’t financial or lending advice.
Frequently asked questions
What is a good debt-to-income ratio?
Lower is better. A common reference point is 36% or less for all debts, with housing at 28% or less. Many lenders approve higher ratios, often up to 43% to 50%, depending on the loan type, credit and savings.
Is DTI based on gross or take-home pay?
Gross pay, before taxes and deductions. That’s why a ratio a lender accepts can still feel tight: your take-home pay is smaller.
What counts as debt?
Minimum required payments on loans and cards, housing payments, and obligations like child support or alimony. Utilities, groceries, insurance and phone bills usually don’t count.
What’s the difference between front-end and back-end DTI?
Front-end, or the housing ratio, counts only housing costs. Back-end counts all monthly debt payments, including housing. When people say DTI, they usually mean back-end.
How can I lower my DTI quickly?
Pay off a loan with a high monthly payment relative to its balance, or add income. In our example, paying off the $400 car loan would bring DTI from 40.0% to 34.3%.
Does DTI affect my credit score?
No. Credit scores don’t use income. But lenders consider DTI alongside your score when deciding on a loan.
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This calculator gives estimates for illustration, based on the figures you enter and the assumptions described on this page. It isn’t financial, tax or legal advice, an offer, or a guarantee of any outcome.